Ulta Beauty to Expand into UK Market Through Space NK Acquisition

Key Takeaways

Ulta Beauty acquires Space NK Limited, enhancing its presence in the U.K. market.
Space NK will operate as a standalone subsidiary under current management, aiming for growth.
The U.K. beauty market is projected to reach $17.52 billion by 2025, presenting significant opportunities for expansion.

Ulta Beauty’s Strategic Move into the U.K. Market

Ulta Beauty has announced its acquisition of Space NK Limited from Manzanita Capital, marking a strategic entry into the U.K. market. Kecia Steelman, president and CEO of Ulta Beauty, expressed enthusiasm about the opportunity, stating, “We are excited to enter the U.K. market via the Space NK banner.” The financial terms of the acquisition remain undisclosed, but it follows a strong performance in Ulta’s fiscal Q1 2025 and a slight enhancement to its full-year guidance.

With 83 stores across the U.K. and Ireland, alongside an online presence, Space NK stands in contrast to Sephora, which operates only nine stores in the region. This acquisition positions Ulta to better compete against Sephora, which has established a reputation in the U.K. beauty sector with brands like Merit, Rare Beauty, Tower 28, and Sol de Janeiro. Sephora is also expanding its footprint, recently opening a new location in Meadowhall Sheffield and another planned for Oxford in autumn 2025.

Under the new agreement, Space NK will continue operating independently as a subsidiary of Ulta Beauty, maintaining its existing management team, including CEO Andy Lightfoot. Lightfoot remarked on the acquisition, noting, “We have long respected Ulta Beauty as the leading specialty beauty retailer in the U.S. We are energized and excited by the opportunity to join Ulta Beauty and benefit from its scale, brand relationships and resources.”

This acquisition aligns with Ulta Beauty’s ongoing international expansion, which is a key component of its Ulta Beauty Unleashed plan. The U.K. beauty and personal care market is expected to grow to $17.52 billion by 2025, with an annual increase of 2.07% projected through 2030. Steelman emphasized the significance of this acquisition in entering a growing market with an established brand, stating, “Space NK’s management team… has done an excellent job building a differentiated beauty experience.”

Bill Fisher, CEO and founder of Manzanita Capital, acknowledged Space NK’s importance to his company over the past 23 years and expressed confidence in Ulta’s ability to enhance Space NK’s growth trajectory.

The acquisition opens up opportunities for Ulta to leverage Space NK’s established brand, aiming to unlock long-term, profitable growth in both U.K. and international markets.

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